Over half the 21 listed PSBs are unfit to absorb weaker state-owned banks

Many of the remaining 11 contenders are also in a precarious position; Indian Bank appears to be the only one to have the financial muscle to absorb some of the bleeders

Last week, the Central Government announced the merger of three public sector banks — Bank of Baroda, Dena Bank and Vijaya Bank — setting off speculation that similar mergers of public sector banks may be around the corner.

But given the deteriorating financial health of most public sector banks (PSBs), the fundamental question is whether there are any healthy PSBs left that can absorb the weaker ones.

Of the twenty-one listed PSBs, eleven banks namely Dena Bank, Allahabad Bank, United Bank of India, Corporation Bank, IDBI Bank, UCO Bank, Bank of India, Central Bank of India, Indian Overseas Bank, Oriental